XILINX, INC. 
By SAN JOSE, Calif., Jan. 20 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced record third quarter fiscal 2010 sales of $513.3 million, up 24% sequentially and up 12% from the third quarter of the prior fiscal year. Third quarter net income was $106.9 million, or $0.38 per diluted share, including previously announced restructuring charges totaling $5.5 million, or approximately $0.02 per diluted share. On a year over year basis, third quarter net income and diluted earnings per share declined because in the third quarter of fiscal 2009 there was a $58.3 million pre-tax gain from the early extinguishment of convertible debentures, partially offset by a $19.5 million pre-tax impairment charge on investments.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)
The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on March 3, 2010 to all stockholders of record at the close of business on February 10, 2010.
Additional third quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Growth Rates
Q3 Q2 Q3
FY 2010 FY 2010 FY 2009 Q-T-Q Y-T-Y
----- -----
Net revenues $513.3 $415.0 $458.4 24% 12%
Operating income $136.6 $82.1 $119.6 66% 14%
Net income $106.9 $64.0 $119.4 67% -10%
Diluted earnings per
share $0.38 $0.23 $0.44 65% -14%
Record sales were driven by strength from all end markets and geographic regions. New Product sales increased 32% sequentially during the quarter due primarily to strong growth from the Virtex®-5 and Spartan®-3 FPGA families.
"It was a record-setting quarter for Xilinx," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "In addition to record total sales, Xilinx's Virtex-5 family comfortably surpassed $100 million in quarterly sales--more than any other FPGA product in history. Sales strength from this family was driven by Communications, Industrial and Other and Data Processing. Based on new design win activity, I am confident about the prospects for continued sales growth from the Virtex-5 family."
Net Revenues by Geography:
Percentages Growth Rates
Q3 Q2 Q3
FY 2010 FY 2010 FY 2009 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
North America 35% 35% 34% 25% 17%
Asia Pacific 36% 35% 33% 27% 18%
Europe 20% 21% 22% 19% 4%
Japan 9% 9% 11% 17% -7%
Net Revenues by End Market:
Percentages Growth Rates
Q3 Q2 Q3
FY 2010 FY 2010 FY 2009 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
Communications 46% 46% 44% 23% 16%
Industrial & Other 32% 31% 33% 29% 8%
Consumer & Automotive 15% 16% 16% 15% 2%
Data Processing 7% 7% 7% 25% 27%
Net Revenues by Product:
Percentages Growth Rates
Q3 Q2 Q3
FY 2010 FY 2010 FY 2009 Q-T-Q Y-T-Y
------- ------- ------- -----
New 33% 31% 21% 32% 72%
Mainstream 33% 33% 34% 22% 9%
Base 29% 31% 40% 18% -17%
Support 5% 5% 5% 22% 5%
Products are classified as follows:
New Products: Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-
3E product families
Mainstream Products: Virtex-4, Spartan-3, Spartan-II and CoolRunner(TM)-
II product families
Base Products: Virtex, Virtex-E, Virtex-II, Spartan, XC4000,
CoolRunner and XC9500 product families
Support Products: Configuration products, HardWire, Software & Support/
Services
Key Statistics:
(Dollars in millions)
Q3 Q2 Q3
FY 2010 FY 2010 FY 2009
------- ------- -------
Annual Return on Equity
(%)* 14 10 20
Operating Cash Flow $185 $118 $128
Depreciation Expense $13 $12 $13
Capital Expenditures $9 $4 $11
Combined Inventory Days 85 75 99
Revenue Turns (%) 58 57 54
*Return on equity calculation: Annualized net income/average
stockholders' equity
Product and Financial Highlights
-- Building upon Virtex-5 success, Xilinx today announced that its Virtex-6
family has achieved full production qualification and is commencing
volume shipments. Xilinx also recently announced first shipments and
availability of the industry's largest FPGA, the 40-nm LX760, which is
ideal for use in advanced prototyping platforms and the ASIC emulation
market.
-- On October 19, 2009, Xilinx and ARM announced they are collaborating to
enable ARM processor and interconnect technology on Xilinx FPGA
products. This agreement is expected to allow programmable solutions to
penetrate even deeper into existing markets and expand into new market
spaces by leveraging ARM's processor strengths and ecosystem.
-- On December 8, 2009, Xilinx announced six new Targeted Design Platform
development kits for the Virtex-6 and Spartan-6 product families. The
new kits increase productivity and innovation for electronic designers
in the areas of target embedded processing, DSP and high speed serial
connectivity.
-- December quarter operating margin was 27%, up from 20% in the prior
quarter and the highest reported by the Company in four years. Improved
customer demand and continued spending discipline contributed to the
operating margin increase.
Business Outlook - March Quarter Fiscal 2010
-- Sales are expected to be up 3% sequentially to down 1% sequentially.
-- Gross margin is expected to be approximately 64% to 65%.
-- Operating expenses are expected to be approximately $180 million,
including $3 million in previously announced restructuring charges.
-- Other income and expense is expected to be a net expense of
approximately $2 million.
-- Fully diluted share count is expected to be approximately 275 million.
-- March quarter tax rate is expected to be approximately 20%.
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's results and management's outlook for the March quarter. The webcast and subsequent replay will be available in the investor relations section of the company's web site at www.investor.xilinx.com. A telephonic replay of the call may be accessed later in the day by calling (800) 642-1687 and referencing confirmation code 47787165. The telephonic replay will be available for two weeks following the live call.
This release contains forward-looking statements and projections. Forward-looking statements and projections can often be identified by the use of forward-looking words such as "expect," "may," "will," "could," "believe," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar words. Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. We undertake no obligation to update such forward-looking statements. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers' customers, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, our ability to forecast end customer demand, customer acceptance of our new products, the ability of the Company to generate cost and operating expense savings in an efficient and timely fashion, the ability of our customers to manage their inventories, a high dependence on turns business, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to successfully manage production at multiple foundries, variability in wafer pricing, and other risk factors listed in our most recent Forms 10-K and 10-Q.
About Xilinx
Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available athttp://www.xilinx.com.
Xilinx, the Xilinx logo, Virtex, Spartan, ISE, and other brands designated herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.
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Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
------------------
Jan. 2, Dec. 27, Sept. 26,
2010 2008* 2009
Net revenues $513,349 $458,387 $414,950
Cost of revenues 184,320 165,331 158,177
------- ------- -------
Gross margin 329,029 293,056 256,773
------- ------- -------
Operating expenses:
Research and development 101,867 86,967 90,145
Selling, general and administrative 85,037 85,032 78,621
Amortization of acquisition-related
intangibles - 1,475 -
Restructuring charges 5,531 - 5,915
----- --- -----
Total operating expenses 192,435 173,474 174,681
------- ------- -------
Operating income 136,594 119,582 82,092
Impairment loss on investments (3,041) (19,540) -
Gain on early extinguishment of
convertible debentures - 58,290 -
Interest and other income (expense),
net (542) (1,743) (1,782)
---- ------ ------
Income before income taxes 133,011 156,589 80,310
Provision for income taxes 26,103 37,145 16,272
------ ------ ------
Net income $106,908 $119,444 $64,038
======== ======== =======
Net income per common share:
Basic $0.39 $0.44 $0.23
===== ===== =====
Diluted $0.38 $0.44 $0.23
===== ===== =====
Cash dividends declared per common
share $0.16 $0.14 $0.14
===== ===== =====
Shares used in per share
calculations:
Basic 276,832 273,997 276,353
======= ======= =======
Diluted 278,566 274,223 276,988
======= ======= =======
Nine Months Ended
-----------------
Jan. 2, Dec. 27,
2010 2008*
---- -----
Net revenues $1,304,534 $1,430,170
Cost of revenues 486,319 519,244
------- -------
Gross margin 818,215 910,926
------- -------
Operating expenses:
Research and development 275,245 267,202
Selling, general and administrative 237,214 266,116
Amortization of acquisition-related
intangibles 2,493 4,326
Restructuring charges 27,217 22,023
------ ------
Total operating expenses 542,169 559,667
------- -------
Operating income 276,046 351,259
Impairment loss on investments (3,041) (53,162)
Gain on early extinguishment of convertible
debentures - 58,290
Interest and other income (expense), net (13,234) 9,975
------- -----
Income before income taxes 259,771 366,362
Provision for income taxes 50,819 82,680
------ ------
Net income $208,952 $283,682
======== ========
Net income per common share:
Basic $0.76 $1.03
===== =====
Diluted $0.75 $1.02
===== =====
Cash dividends declared per common share $0.44 $0.42
===== =====
Shares used in per share calculations:
Basic 275,989 276,584
======= =======
Diluted 277,030 277,603
======= =======
* As adjusted due to the retrospective adoption of the accounting
standard for convertible debentures in the first quarter of fiscal
2010.
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Jan. 2, March 28,
2010 2009*
---- -----
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $1,489,993 $1,324,933
Accounts receivable, net 231,078 216,390
Inventories 128,935 119,832
Deferred tax assets and other current
assets 108,720 91,313
------- ------
Total current assets 1,958,726 1,752,468
Net property, plant and equipment 367,514 387,907
Long-term investments 503,106 347,787
Other assets 292,605 323,739
------- -------
Total Assets $3,121,951 $2,811,901
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $284,573 $170,702
Deferred income on shipments to
distributors 77,395 62,364
------ ------
Total current liabilities 361,968 233,066
Convertible debentures 354,460 352,110
Deferred tax liabilities 247,822 196,189
Other long-term liabilities 123,793 81,776
Stockholders' equity 2,033,908 1,948,760
--------- ---------
Total Liabilities and Stockholders' Equity $3,121,951 $2,811,901
========== ==========
* Derived from audited financial statements and adjusted for the
retrospective adoption of the accounting standard for convertible
debentures in the first quarter of fiscal 2010.
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands) Three Months Ended
------------------
Jan. 2, Dec. 27, Sept. 26,
2010 2008* 2009
---- ----- ----
SELECTED CASH FLOW INFORMATION:
Depreciation $12,867 $13,438 $12,056
Amortization 3,210 4,069 3,260
Stock-based compensation 15,519 13,041 11,762
Net cash provided by operating
activities 185,478 128,479 117,976
Purchases of property, plant and
equipment (8,693) (11,061) (4,133)
Payment of dividends to stockholders (44,299) (38,357) (38,744)
Repurchases of common stock (25,000) - -
Proceeds from issuance of common
stock to employees and excess tax
benefit 13,546 2,992 15,677
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $1,291 $1,337 $1,272
Research and development 7,289 6,055 5,205
Selling, general and administrative 6,939 5,649 5,285
Restructuring charges - - -
(In thousands) Nine Months Ended
-----------------
Jan. 2, Dec. 27,
2010 2008*
---- -----
SELECTED CASH FLOW INFORMATION:
Depreciation $37,932 $42,167
Amortization 11,777 12,420
Stock-based compensation 41,010 41,188
Net cash provided by operating activities 450,421 381,676
Purchases of property, plant and equipment (17,540) (32,711)
Payment of dividends to stockholders (121,617) (115,982)
Repurchases of common stock (25,000) (275,000)
Proceeds from issuance of common stock to
employees and excess tax benefit 13,167 84,379
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $3,678 $4,416
Research and development 18,140 18,702
Selling, general and administrative 18,247 17,506
Restructuring charges 945 564
* As adjusted due to the retrospective adoption of the accounting
standard for convertible debentures in the first quarter of fiscal
2010
SOURCE Xilinx, Inc.
